Lidl rolls out SAP for Retail powered by SAP HANA with KPS

Lidl has started the roll-out a new merchandise management and information system (“eLWIS”),based on SAP for Retail powered by SAP HANA, provided in partnership with KPS.

The system, which was piloted in Austria, will now be implemented across the remaining countries – including the UK – over the next couple years.

Lidl is one of the leading companies in the retail sector in Germany and Europe. The company is currently in 30 countries worldwide presented and operates around 10,000 stores and more than 140 distribution centres in 27 European countries. To ensure merchandise is still effectively managed in the future and that the company maintains high process standards across its vast number of stores, Lidl needed a centralised, future-proof system with greater functional scope, integration capabilities and enhanced end-to-end process management.

Lidl’s solution based on SAP for Retail was developed together with strategic partner, KPS, to replace the company’s legacy merchandise management system. The legacy system had been developed in-house and had reached its limits in terms of sustainability and the potential for further development and was hampered by gaps in process continuity, redundant master data management and process breaks.

Alexander Sonnenmoser, divisional board member for business technology at Lidl, said: “We were looking to map integrated process chains right through from the vendor to the customer ‒ rather than individual functions. This new platform is making us fit for the future.”

Lidl can now make inventory data and reports available in near real time and provide key information to adjacent systems. The company has also been able to replace vertical processes with horizontal ones to create a seamless supply chain from the vendor to the customer. The standards developed for eLWIS will form the basis for implementing the system in all countries of Lidl’s operations.

“Lidl can use this global template in every country as a starter, which means that they will gather pace as we progress through the roll-out program,” says KPS vice president, Matthias Nollenberger. “SAP for Retail powered by SAP HANA has enhanced our capacity for IT innovation,” says Sonnenmoser. “The new platform is the foundation we need to continue implementing our processes efficiently in IT systems so that we can reduce complexity and focus on providing simplicity for our customers and employees through forward-thinking concepts.”